10 Best Small-Cap Stocks With Huge Potential According to Reddit as Market Looks Beyond AI Trade

2. Halozyme Therapeutics, Inc. (NASDAQ:HALO)

Number of Hedge Fund Investors: 40

Halozyme Therapeutics, Inc. (NASDAQ:HALO) is one of the best small-cap stocks with huge upside potential according to Redditors. The company is working on oncology therapies designed to target the tumor microenvironment. The company recently announced to acquire Elektrofi, which can expand its drug delivery capabilities into high-concentration biologic formulations. The stock has gained about 54% so far this year.

The FDA recently approved Darzalex Faspro, an injectable version of the multiple myeloma therapy daratumumab, developed by J&J and Halozyme Therapeutics (HALO). The product was approved as a front-line option for light chain (AL) amyloidosis, a rare blood cell disorder.

Earlier in November, the company posted strong quarterly results, indicating revenue growth of 22% year over year, while royalty revenue increased 52%.

Artisan Small Cap Fund stated the following regarding Halozyme Therapeutics, Inc. (NASDAQ:HALO) in its second quarter 2025 investor letter:

“Among the detractors in Q2 were Halozyme Therapeutics, Inc. (NASDAQ:HALO), Clearwater Analytics and Lattice Semiconductor. Halozyme provides a unique technology platform (ENHANZE®) that converts biologics and small molecule drugs administered intravenously into a subcutaneous formulation. The company reported strong earnings and raised its full-year guidance in May, but shares were negatively impacted by uncertainty surrounding new draft guidance from the Centers for Medicare and Medicaid Services (CMS) on drug pricing and potential delays in launching new products. We trimmed our position as we await final guidance from CMS.”

1. Aurora Innovation Inc (NASDAQ:AUR)

Number of Hedge Fund Investors: 41

Pennsylvania-based self-driving technology company Aurora Innovation Inc (NASDAQ:AUR) is one of the best small-cap stocks to buy, according to Redditors. The company sells self-driving hardware, software, and data services for different vehicle types. The company’s management said in a recent earnings call that its platform crossed 100,000 driverless miles on public roads and maintained a “perfect driverless safety record.”

“Looking ahead to 2026, we expect to rapidly unlock lanes across the Sun Belt. Future planned expansions include lanes between Dallas and Laredo, a critical route for one of our key customers and between Dallas and Atlanta, which will extend the driverless I-10, I-20 corridor to approximately 2,000 miles. Launching driverless operations from Fort Worth to El Paso and soon in the Phoenix extension required us to validate behavior against dust storms, which are prevalent in some parts of Texas and Arizona,” the company’s CEO Christopher Urmson said during the call.

Read the full earnings call transcript.

Aurora has five driverless trucks that are now regularly delivering customer freight, and the company is also planning to deploy a fully driverless truck without an observer next year.

The stock is down 36% so far this year.

While we acknowledge the potential of AUR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AUR and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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